OCTOBER 10, 1921, 1 COMP. GEN. 202

OCTOBER 10, 1921, 1 COMP. GEN. 202

EXCHANGE - REIMBURSEMENT OF EXPENSES OF LAST SICKNESS AND BURIAL OF PENSIONER WHERE EXPENSES OF THE LAST SICKNESS AND BURIAL OF A PENSIONER WHO DIES A RESIDENT OF A FOREIGN COUNTRY ARE PAID IN THE CURRENCY OF THAT COUNTRY, REIMBURSEMENT UNDER ACT OF MARCH 2, 1895, 28 AT., 964, IN MONEY OF THE UNITED STATES SHOULD BE MADE AT THE RATE OF EXCHANGE IN EFFECT AT THE TIME OF PAYMENT, IF MADE IN DUE COURSE, NOTWITHSTANDING THERE MAY HAVE BEEN A DEPRECIATION IN THE VALUE OF THE FOREIGN CURRENCY SUBSEQUENT TO THE TIME THE EXPENSES WERE INCURRED AND PAID.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE INTERIOR, OCTOBER 10, 1921:

I HAVE YOUR LETTER OF SEPTEMBER 20, 1921, REQUESTING DECISION AS TO THE PROPER RATE OF PAYMENT IN MONEY OF THE UNITED STATES OF CLAIMS FOR REIMBURSEMENT OF THE EXPENSES OF LAST SICKNESS AND BURIAL OF A PENSIONER WHO DIES A RESIDENT OF A FOREIGN COUNTRY, THE SAID EXPENSES HAVING BEEN INCURRED AND PAID IN THE MONEY OF THAT COUNTRY.

IN THIS CONNECTION THE BUREAU OF PENSIONS HAS INSTANCED THE SPECIFIC CASE OF ONE KATHARINA SEIFFERT CLAIMING REIMBURSEMENT OF THE APPROVED EXPENSES TO THE AMOUNT OF 1,437 MARKS 97 PFENNIGS, PAID BY HER ON ACCOUNT OF THE LAST SICKNESS AND BURIAL OF HER MOTHER, MARIE J. SEIFFERT, A FORMER PENSIONER, WHO DIED IN GERMANY DECEMBER 10, 1918. THE BUREAU POINTS OUT THAT CHANGING THIS SUM TO UNITED STATES MONEY ON THE BASIS OF THE MINT VALUE OF THE MARK, 0.2382, WOULD RESULT IN PAYING THE PENSIONER $342.52, WHICH SUM AT THE PREVAILING RATE OF EXCHANGE WOULD PURCHASE 34,252 GERMAN MARKS WITH WHICH TO DISCHARGE THE GOVERNMENT'S OBLIGATION ON THIS CLAIM; AND SUBMITTED TO YOU THE QUESTION WHETHER IN PAYING THIS CLAIM CONVERSION INTO UNITED STATES MONEY SHOULD BE ON THE BASIS OF THE MINT VALUE OF THE GERMAN MARK OR ITS COMMERCIAL VALUE, AND IF THE LATTER, WHETHER THE VALUE NOW PREVAILING IN THE CASE OF UNPAID BILLS, AND THE VALUE PREVAILING AT THE TIME OF THE DEATH OF THE PENSIONER IN CASE OF PAID BILLS, SHOULD GOVERN.

THE ACT OF MARCH 2, 1895, 28 STAT., 964, PROVIDES THAT IN CASE THERE IS NO ONE AUTHORIZED TO TAKE THE ACCRUED PENSIONS OF DECEASED PENSIONERS---

NO PAYMENT WHATSOEVER OF THEIR ACCRUED PENSION SHALL BE MADE OR ALLOWED EXCEPT SO MUCH AS MAY BE NECESSARY TO REIMBURSE THE PERSON WHO BORE THE EXPENSE OF THEIR LAST SICKNESS AND BURIAL, IF THEY DID NOT LEAVE SUFFICIENT ASSETS TO MEET SUCH EXPENSES.

THE SPECIFIC EXPENSE IN QUESTION WAS INCURRED AND PAID IN TERMS OF GERMAN CURRENCY AND THE GOVERNMENT'S OBLIGATION IS TO REIMBURSE THIS CLAIMANT IN THE SAME TERMS AND TO THE EXACT AMOUNT OF THE EXPENSE THUS INCURRED. THERE IS NO OBLIGATION TO PAY IN TERMS OF UNITED STATES MONEY AT ANY FIXED RATIO OF THAT MONEY TO GERMAN CURRENCY. IF THE OBLIGATION COULD HAVE BEEN DETERMINED AND PAID PROMPTLY, AND HAD BEEN SO DETERMINED, IT WOULD HAVE BEEN FULLY DISCHARGED BY PAYING TO THE CLAIMANT THE EXACT NUMBER OF GERMAN MARKS AND PFENNIGS WHICH SHE HAD EXPENDED IN THIS BEHALF, OR BY PAYING HER THAT SUM OF MONEY OF THE UNITED STATES WHICH SHE COULD HAVE CONVERTED INTO THE REQUIRED NUMBER OF MARKS AND PFENNIGS.

NO RIGHT TO REIMBURSEMENT COULD ACCRUE TO THIS CLAIMANT UNTIL IT HAD BEEN OFFICIALLY DETERMINED THAT SHE PAID THE EXPENSES IN QUESTION, THAT THEY WERE EXPENSES OF THE LAST SICKNESS AND BURIAL OF THE DECEASED PENSIONER, AND THAT THE DECEDENT DID NOT LEAVE SUFFICIENT ASSETS TO MEET THE XPENSE; ALL MATTERS OF FACT TO BE DETERMINED BY YOUR DEPARTMENT IN ACTING UPON THE CLAIM. THE OBLIGATION OF THE GOVERNMENT DID NOT BECOME DUE AND PAYABLE UNTIL THE CLAIM HAD BEEN DULY ALLOWED. ASSUMING THAT PAYMENT IS MADE IN DUE COURSE AFTER SUCH ALLOWANCE THE RATE OF EXCHANGE IN EFFECT AT THE TIME OF PAYMENT SHOULD GOVERN. THE SAME RULE SHOULD GOVERN PAYMENT OF OTHER UNPAID BILLS FOR LIKE EXPENSES.

CLAIMANTS CAN HAVE NO JUST CAUSE FOR COMPLAINT IF THE VALUE OF THE MARK HAS DEPRECIATED SINCE THE EXPENSES WERE INCURRED OR PAID, PROVIDED THERE HAS BEEN NO UNNECESSARY DELAY ON THE PART OF THE GOVERNMENT IN ADJUDICATING AND PAYING THE CLAIM. THEY SHARE THE COMMON FATE OF THOSE WHO SUFFER FINANCIAL LOSS BECAUSE OF DEPRECIATION OF A CURRENCY IN WHICH DEBTS DUE TO THEM ARE PAYABLE.